The Chairperson of Kilkenny ICMSA, John Robinson, said that GIIL’s decision to hold milk price at 37.5 c/L for July milk is extremely disappointing set against the IDB Index.
The Callan farmer pointed out that another major milk processor - “and a PLC one, at that” - has been able to pay their similar sized suppliers prices for their May, June and July milk that translate into excess of €1000 more than the GIIL counterpart.
He was also highly critical the speed with which GIIL announced this disappointing price for July milk: “Farmers will wonder what the hurry was here and they may well suspect that this disappointing price announcement is designed to avoid having to take cognisance of the next round of market price rises expected to be announced in coming days. If the IDB Index is adjusted upwards in the next announcement – as is widely expected - then the GIIL decision will look even more questionable than it does now.
It is especially disappointing to consider this attempt at holding buoyant market returns in the light of the sentiments expressed when GIIL was set up about how ‘farmer-orientated’ the new venture was going to be. Dairy farmers will know that the best way of showing ‘farmer-orientation’ is to pay the best milk price that the market can bear and that is most assuredly not happening in this case where GIIL’s July price is a substantial 1.5c/L to 2c/L below where it should be during key months of milk production”, said Mr Robinson